News & Resources

Hawaiian Attorney General joins other AGs to oppose reduced short term lending oversight

Oct 11, 2012 Quinn Thomas

The short term lending industry has come under scrutiny from lawmakers around the U.S. Now, more than 40 attorneys general are voicing their opinions to Congress. Hawaiian Attorney General David Louie was the most recent to join the group, which is calling on Congress to oppose a bill that would limit states' ability to crackdown on short term lenders, in a letter initiated by Illinois Attorney General Lisa Madigan and Indiana Attorney General Greg Zoeller. The letter, which was addressed to House Speaker John Boehner, House Minority Leader Nancy Pelosi, Senate Majority Leader Harry Reid and Senate Minority Leader Mitch McConnell, targets portions of the Consumer Credit Access, Innovation and Modernization Act attending to short term lending practices. According to the group of attorneys general, the bill would allow lenders to recoup debt from consumers if there is "reasonable basis" that they are able to repay the loan. It additionally exempts loans with terms of one year or less from requirements put in place by the Truth in Lending Act. The attorneys general's concerns have been echoed by cities and states that are trying to restrict where short term lending businesses may operate.